Mon. Apr 22nd, 2024
chegg busuu 120m 436mbutchertechcrunch

NYSE-listed entity Chegg is a student-learning and media platform. It confirms the acquisition of Busuu, the reputed online firm for language learning. The deal is estimated at $436 million. Busuu started its journey in 2008 in the European market. The all-cash transaction is significant, considering how Busuu had garnered cumulative funding of $16.1 million at the time of selling out to Chegg. This indicates how the founders were committed to serving 120 million+ users throughout 160+ nations. 500,000 paying users get courses in twelve languages at Busuu.

The company got funding of $2 million from GP Bullhound along with several HNWIs (high net-worth individuals) on May 27, 2020. The earlier investors were McGraw-Hill Education, Harold Primat, Martin Varsavsky, Johann Hansmann, and PROfounders Capital. The President and CEO at Chegg, Dan Rosensweig, feels that acquiring Busuu will help Chegg scale up its business exponentially while generating more value for the current user base. It will help Chegg get into several global markets while ramping up Busuu’s presence in the U.S.

Full-year Busuu revenues are anticipated at $45 million in 2021, with 20% of year-on-year growth. Chegg is also expecting a tripling of valuation for the digital language segment (currently worth $17 billion as per estimates). This could happen over the upcoming five to six years according to the company. Adrian Hilti and Bernhard Niesner set up Busuu in 2008. The company has offices in Madrid in Spain, and London in the United Kingdom. It offers a unique model for language learning. Reports indicate how users require just 13 study hours over a two-month course for advancing an entire semester in college. There are bi-annual and annual free/paid subscriptions, along with monthly options as well.

Busuu also offers language-based business instructions, along with live tutoring. Bernhard Niesner states that the acquisition makes Busuu a part of the leading Chegg family. This builds a new ed-tech revolution that prioritizes learners above all else. This partnership will drive expansion, particularly throughout the U.S.

By earthao